GRAINS-Soybeans head for 2.5% weekly gain on US demand hopes
CANBERRA, July 18 (Reuters) - Chicago soybean futures rose on Friday, on track for a weekly gain of about 2.5%, supported by hopes for improved U.S. exports and expectations that the country's biofuel policy would boost demand for soyoil used as feedstock.
Despite the prices being less than $1 a bushel above last year's five-year lows, the plentiful supply from South America and projections of a large U.S. harvest capped further gains.
Corn futures also rose and were set to end the week up around 3% due to a wave of bargain-hunting and short-covering, though supply remains ample.
Wheat climbed but was headed for a weekly loss of about 1.5% amid seasonal pressure from ongoing northern hemisphere harvests.
The most active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.6% at $10.32-1/2 a bushel by 0331 GMT.
A weaker dollar .DXY helped propel gains by making U.S. farm goods cheaper for overseas buyers.
CBOT soyoil BOc1 rose 0.5% and was headed for a roughly 4% weekly gain after touching its highest level in nearly two years.
U.S. policies restricting the range of non-soy feedstocks that can be used to make biodiesel lifted soyoil but beans will struggle to sustain a rally, said Tobin Gorey, founder of commodities consultancy Cornucopia.
"Soybean supply is neutral," he said. "There's not a lot of traction for prices."
U.S. soybean export sales in the week ended July 10 reached 529,600 metric tons for 2025-26 shipment, the U.S. Department of Agriculture (USDA) said, beating analysts' expectations.
The USDA also this week reported a sale of 120,000 tons of U.S. soybeans to "unknown destinations", triggering speculation that China might be the buyer and could buy again.
A trade deal between the United States and Indonesia could boost U.S. soy exports.
However, oilseed lobby group Abiove raised its forecast for Brazil's 2024/25 soybean exports and the Rosario Grains Exchange lifted its estimate for Argentina's 2024/25 harvest.
In other crops, CBOT corn Cv1 was up 0.9% at $4.24-3/4 a bushel and wheat Wv1 was 0.5% higher at $5.36 a bushel.
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